Cube Entertainment is on its rise early this morning with their share price increasing to 3,140 Won, a jump of 3.97% as compared to yesterday’s closing price. Analysts are taking strong interest on Cube Entertainment as one of the most undervalued company in the industry.
Taurus Investment & Securities today has recommended Cube Entertainment as a company that needs to look out for, stating that there is a new growth potential in the China market. The target price, however, was not spelt out.
Financial analyst Kim TaeHyun expressed, “The popularity of Cube Entertainment’s major artists BEAST and 4minute in the Oriental market is increasing steeply in the Greater China region (China, Hong Kong, Taiwan)” and, “This year, it is expected that 10 to at most 16 concerts will be added to the Greater China region. 4minute’s latest album ‘Crazy’ too, was revealed to chart at #1 on QQ Chart for 10 consecutive weeks.”
“Currently Cube Entertainment’s previous declaration with the securities commission revealed that their estimated Price-Earning Ratio is at a conservative number of 15 times this year (Industry average at 25 times) and 8 times in 2016. Given its growth potential and the industry cycle, Cube Entertainment is a significantly undervalued.”
He continued, “Following BEAST and 4minute’s increasing activities, the revenue growth will likely to increase greatly starting with this year” and, “We look forward to its coming new growth potential and its new position it will soon hold.”
Kim also explained, “In 2015, rookie male group BTOB member Yook Sungjae is on his rising popularity” and, “Yook Sungjae had proven his singing skills on variety program ‘Masked Singer’ and even took on lead role in drama ‘School 2015’, thus, showing a growing potential (for the company).”
Also, “Looking at past precedence like Lee JongSuk and Kim WooBin who have become top stars after gaining popularity in ‘School’ series, it is worth expecting Yook SungJae’s prospects in the future.” He added, “If ‘School 2015’ ends around June, (there are) BTOB’s comeback plans. With Yook Sungjae’s popularity, it is expected that BTOB’s recognition will increase largely too.”
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